Bank Of Japan Surprises Markets With Bold Rate Hike Japan's central bank aims to boost the yen and stabilize an economy grappling with inflation pressuresThe world was shaken this week as the Bank of Japan (BOJ) made a surprising decision to raise its key interest rate, marking a significant shift in its monetary policy. The interest rate was adjusted from a narrow range of 0% to 0.1% to 0.25%, causing ripples through both domestic and international markets. Naohiko Baba, chief Japan economist at Barclays, commented, "Today’s decision was a surprise to many, and markets reacted quite intensely." Economists have noted that this scenario has bifurcated Japan's economy, enabling large international corporations to reap benefits while smaller domestic businesses struggle to keep their head above water. Concerns surrounding the impact of a weakened currency on general economic health have underscored the urgency for structural adjustments within Japan's economy.

Source: New York Times August 02, 2024 17:10 UTC